Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against SVB Financial Group (SIVB, SIVBP)

Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming May 12, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired SVB Financial Group (“SVB” or the “Company”) (NASDAQ: SIVB, SIVBP) securities between June 16, 2021 and March 10, 2023, inclusive (the “Class Period”).

If you suffered a loss on your SVB investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/SVB-Financial-Group/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [e-mail] to learn more about your rights.

On March 8, 2023, SVB announced that it intends to raise more than $2 billion through offerings of common stock and depositary shares and that it had sold approximately $21 billion of its available-for-sale securities, which will result in an after-tax loss of roughly $1.8 billion in the first quarter of 2023. The Company had taken these actions to “strengthen [its] financial position” after “client cash burn . . . remained elevated and increased further in February, resulting in lower deposits than forecasted.”

On this news, the Company’s common share price fell $161.79, or 60.4%, to close at $106.04 per share on March 9, 2023, thereby injuring investors.

On March 9, 2023, media outlets reported that various venture capital funds had advised their portfolio companies to pull their money out of SVB accounts. In a single day, investors and depositors attempted to pull $42 billion from the Bank. The run pushed the Bank into insolvency and the Bank was placed into Federal Deposit Insurance Corporation (“FDIC”) receivership on March 10, 2023.

It quickly emerged that SVB’s collapse was due in part to rapidly rising interest rates. Since 2021, SVB invested substantially in U.S. Treasuries and other government-sponsored debt securities. The Federal Reserve’s interest rate increases “battered the tech startups and venture capital firms Silicon Valley Bank serves, sparking a faster-than-expected decline in deposits that continues to gain steam,” according to media outlets.

Trading of the Company’s stock had been halted before the market opened on March 10, 2023, at which point it had already fallen 34% from the prior day’s closing price during pre-market trading.